According to Tobin's Q Theory,when Equity Prices Are Low the Market

question 12

Multiple Choice

According to Tobin's q theory,when equity prices are low the market price of existing capital is ________ relative to new capital,so expenditure on fixed investment is ________.

• A)cheap;low
• B)dear;low
• C)cheap;high
• D)dear;high

Define and exemplify contractual intent and its necessity for valid offer formation.

Understand the principles of offer, acceptance, and the formation of bilateral and unilateral contracts.

Identify the requirements for valid acceptance and the effects of various acceptance methods.

Comprehend the factors affecting the enforceability of agreements not in writing.

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Definitions:

Legal Constraints

Restrictions imposed by laws and regulations that dictate how a business can operate.

Profit Making

The primary goal of businesses, which involves generating revenue that exceeds the costs of operating, leading to financial gain.

Instrumental Value

The worth or usefulness of something based on its ability to help achieve an end or a goal.

U.S. Managers

Individuals in managerial positions within companies based in the United States, responsible for directing and overseeing the operations and strategic planning of their respective organizations.